Sheela Foam Ltd reported a robust financial performance for H1 FY27, with consolidated revenue rising 22% to Rs 2,077 crore and profit after tax jumping over 6x to Rs 109 crore. The results were supported by a successful turnaround of its subsidiary, Furlenco, which showed significant growth in subscribers and AUM. Despite raw material price volatility, the company successfully offset cost pressures through strategic product price hikes.
Sheela Foam H1 FY27 Financial Results
H1 FY27 Revenue: Rs 2,077 Crore; H1 FY27 PAT: Rs 109 Crore
Reader Takeaway: Strong revenue growth and Furlenco turnaround offset by significant raw material cost inflation in Polyol and TDI.
What just happened
Sheela Foam Ltd has reported its financial results for the half-year ending September 30, 2026. The company achieved a consolidated profit after tax of Rs 109 crore, up from Rs 17 crore in the same period last year. Consolidated revenue climbed 22% to Rs 2,077 crore, while reported EBITDA increased by 18% to Rs 192 crore.
Why this matters
The highlight of the current fiscal performance is the successful integration and turnaround of Furlenco. Since its transition to a subsidiary, Furlenco has seen its revenue grow 3.3x to Rs 229 crore. The subsidiary reported a positive return on equity of 18%, a sharp reversal from -143% in H1 FY24. This segment’s growth is playing a crucial role in diversifying the company's revenue streams.
Operational Performance
Sheela Foam faced severe input cost inflation, with raw material prices for Polyol and TDI surging by 65% and 33%, respectively. To protect margins, the company implemented price increases ranging from 21% to 39% across its mattress and foam product lines. Despite these hikes, the company maintained healthy operational momentum, recording an 11% value growth in mattresses and 26% in foam products.
Risks to watch
Management highlighted two primary challenges. First, global commodity headwinds continue to pressure the cost structure. Second, the company observed signs of shifting consumer affordability and changes in festive season demand patterns, which could impact near-term volume growth.
Context metrics
Furlenco’s active subscriber base has reached 201,000, and its assets under management (AUM) expanded to Rs 599 crore. The company remains committed to its 2030 sustainability roadmap, focusing on increasing solar energy capacity to 5.4MW and enhancing gender diversity across its workforce.